Two majority shareholders have offered to buy out Wah Kwong Shipping Holdings, one of Hong Kong's oldest listed companies, in a move that would result in delistings locally and in London.
George Chao Sze-kwong, president of Wah Kwong, and CMB, a shipping company based in Belgium, have proposed buying for HK$427 million the remaining 57.7 per cent of shares they do not own from shareholders.
The offer is HK$5.65 a share, valuing Wah Kwong at HK$723.5 million.
The offer represents a 17.7 per cent premium to the company's last closing price on May 31.
However, Wah Kwong has a net-asset value of HK$1.45 billion, or HK$11.37 per share.
This means Mr Chao, who holds 15.2 per cent of Wah Kwong, and CMB, which owns 27.1 per cent, will acquire the shares at less than half their net-asset value.
Still, the offer would be the highest price the counter has seen in two years.